Question: PLEASE DO NOT COPY FROM OTHER POSTS ON CHEGG BECAUSE THEY'RE DIFFERENT NUMBERS!!! 3. Suppose Dearborn Company considers using a public warehouse at St. Louis

PLEASE DO NOT COPY FROM OTHER POSTS ON CHEGG BECAUSE THEY'RE DIFFERENT NUMBERS!!!

3. Suppose Dearborn Company considers using a public warehouse at St. Louis to lower logistics costs between its factory and its customers. Shipments currently are made directly from the factory in New York. There is a $15/cwt. handling charge at the warehouse. Below is the information about direct shipments and shipments through the warehouse.

Direct shipments

Factory

Customer

Shipment volume, lb

Transportation rate, $/cwt.

New York

Boston

10,000

17.42

New York

Cleveland

12,000

24.12

New York

Dallas

8,000

52.21

New York

Seattle

10,000

57.09

Shipments through the warehouse

Factory

Warehouse

Shipment volume, lb

Transportation rate $/cwt.

New York

St. Louis

40,000

17.65

Warehouse

Customer

Shipment volume, lb

Transportation rate, $/cwt.

St. Louis

Boston

10,000

31.42

St. Louis

Cleveland

12,000

11.12

St. Louis

Dallas

8,000

14.21

St. Louis

Seattle

10,000

37.09

Please calculate the logistics costs of these two alternatives. Should Dearborn Company use the warehouse to do the shipments? Why? Please also discuss pros and cons of these alternatives.

PLEASE DO NOT COPY FROM OTHER POSTS ON CHEGG BECAUSE THEY'RE DIFFERENT NUMBERS!!!

PLEASE TYPE DO NOT HANDWRITE!

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